Start from your full landed cost
Winning L1 at a loss is not a win. Before you think about competitors, work out what this specific contract will cost you to deliver — not your usual list price. Government contracts often carry costs that ordinary sales do not: many consignees, installation, long warranty, bank guarantees and a longer wait for payment.
- ✓Product or service cost at the quantity asked
- ✓Freight to every consignee, packing, loading/unloading and insurance
- ✓Installation, training and warranty/AMC obligations in the bid and ATC
- ✓Cost of EMD (if not exempt) and ePBG — bank charges and blocked limits
- ✓Interest on working capital for the expected delivery-to-payment time
- ✓GST and any other taxes, as the bid requires prices to be quoted
- ✓GeM transaction charges under the current policy
- ✓Risk margin for price changes during bid validity and delivery
Decide your floor price before you see anyone else's
Your floor is the lowest price at which the contract still makes sense for you. Write it down before you submit and before any reverse auction. It is the number that protects you from a bad decision made in the last minutes of an RA.
Read past results for the same item
Closed bids for the same category, buyer and region show the prices that have actually won, and who wins repeatedly. Treat them as a range, not a target — specifications, quantities and delivery terms differ. If winning prices are consistently below your floor, your effort is better spent on other buyers or categories.
Match the price to the evaluation basis
In a total-value bid, the grand total decides L1, so you can balance item prices as long as each is reasonable. In item-wise evaluation, each line competes on its own. Check the bid's evaluation method and BoQ units before you price. Abnormally low prices on some items can attract scrutiny, and you are bound by every line you quote.
Reverse auction: a plan, not a reflex
- ✓Enter the RA with your floor price written down
- ✓Keep someone available for the full RA window with a stable connection
- ✓Reduce in steps you planned, not in panic
- ✓Stop at your floor even if you lose — the next bid will come
Use preferences you are entitled to
If you are an eligible MSE or a Class-I local supplier, purchase preference may give you a chance to match L1 for part or all of the quantity even when you are not the lowest. Know the bid's rules so that you are ready to accept a match offer quickly.
Find live tenders
Frequently asked questions
How do I find the right price for a GeM bid?
Start from your full cost to deliver this contract (including freight, warranty, EMD/ePBG, GST and payment time), set a floor, then check winning prices in past bids for the same item and buyer.
Should I quote very low to become L1?
Only if you can deliver profitably. You are bound by your price for the bid validity and the contract; a loss-making contract can also lead to delivery problems and penalties.
How should I bid in a GeM reverse auction?
Decide your minimum price beforehand, reduce in planned steps, stay online for the whole window and stop at your floor.
Where can I see winning prices of past GeM bids?
Results of finalised bids are available on GeM. Mitra's archive of closed tenders helps you look at past bids by category, buyer and state.
Related guides
Rules change. Always confirm the details in the bid document and on gem.gov.in before you bid. · Updated 2026-11-02
Find GeM tenders that fit your business
Daily WhatsApp alerts for your category, with an eligibility check on every tender. Try it free for 7 days.